WH Smith has enhanced its reputation as one of the high street’s most
resilient businesses after reporting a strong profit performance in the
run-up to Christmas despite a sharp drop in sales.

Kate Swann, chief executive, said like-for-like sales fell by 5pc in the 20 weeks to January 20, with a 5pc drop in its high street stores and a 4pc decline in its travel stores at airports, railway stations and service stations.

However, Ms Swann said sales were “ahead” of WH Smith’s plans and that profits had been boosted by an improvement in margins.

Ms Swann is due to step down as chief executive this summer after 10 years in the role. She has driven annual profits at the company to more than £100m by cutting costs and moving WH Smith out of low-margin sectors such as CDs and DVDs.

In the most recent period, Ms Swann said WH Smith margins were improved by a greater proportion of its sales coming from stationery.

The robust performance of WH Smith contrasts sharply with the fate of rival retailers such as HMV which have collapsed into administration.